Which of the following is a significant governance issue that should be reported by the chief audit executive to the board?
A.
There is no risk management and control process and risk management is solely tie responsibility of operational managers
B.
The organisation’s code of conduct is distributed to employees each year however employees are not required to attest that they will operate In compliance with the code.
C.
Reconciliation of planned board meeting agendas to meeting minutes finds that one meeting was canceled, and the agenda topics were covered at the following meeting.
D.
The review of the five-year strategic plan shows that the details of the plan have not been dearly communicated to employees throughout the organization
A significant governance issue that must be reported to the board is the absence of a formal risk management and control process, with risk management being solely the responsibility of operational managers. Effective governance requires a structured risk management framework overseen at the highest levels of the organization. The lack of such a process indicates a critical deficiency that can have severe implications for the organization's ability to manage and mitigate risks.
References:
The Institute of Internal Auditors (IIA) Standard 2110 – Governance: "The internal audit activity must assess and make appropriate recommendations to improve the organization’s governance processes."
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